Does the Lees Famous Recipe Area Development Agreement allow for the sale of beverage items?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have developed and own a distinctive format and system relating to the development and operation of Lee's Famous Recipe Restaurants featuring chicken, biscuits and other approved food and beverage items, all of which are prepared, stored and served in accordance with our System, which includes the sale of approved products and services using certain distinctive types of décor, products, equipment, supplies, confidential information, business techniques, methods and procedures, sales promotion programs, and the Marks, as we periodically may modify and further improve/
Gross Sales' means the aggregate amount of sales of all food and beverages, and other goods and services; the sale of any products or services associated with the use of the Marks, including sales from vending machines, deliveries, and catering sales, whether for cash, on credit or otherwise, made or provided at or in connection with the Restaurant, including off-premises sales and monies derived at or away from the Restaurant; insurance proceeds for lost sales covered by business interruption insurance; and agreements to pay or other consideration, whether or not payment is received at the time of sale or any such amounts prove uncollectible.
Notwithstanding Section 1(C) of this Agreement, we (for ourselves and our affiliates) retain the right to:
Promote, sell, distribute and license products and services authorized for sale at Lee's Famous Recipe Restaurants as well as ancillary products and services such as its sauces and other food products, beverages, clothing, glassware and memorabilia under the Marks through dissimilar channels of distribution (i.e., other than the operation of full-service Lee's Famous Recipe Restaurants), including direct mail, wholesale activities, grocery stores, convenience stores, retail stores, and by electronic means such as the Internet, and other permanent, temporary, or seasonal food service facilities, carts, kiosks, or other mobile food vehicles, such as food trucks, and pursuant to conditions we deem appropriate within and outside the Development Area;
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the Area Development Agreement does allow for the sale of beverage items. The FDD states that Lees Famous Recipe Restaurants feature chicken, biscuits, and other approved food and beverage items. These items are prepared, stored, and served in accordance with the Lees Famous Recipe system. The system includes the sale of approved products and services using distinctive décor, products, equipment, supplies, confidential information, business techniques, methods, procedures, sales promotion programs, and the Marks.
This means that as a franchisee, you are expected to adhere to the standards and specifications outlined in the Operations Manual and other system standards. These standards are essential to the operation of all Lees Famous Recipe Restaurants and the system as a whole. The franchisor may modify the system from time to time as they deem appropriate.
Gross sales are defined as the aggregate amount of sales of all food and beverages, and other goods and services. This includes sales from vending machines, deliveries, and catering sales, whether for cash, on credit or otherwise, made or provided at or in connection with the Restaurant, including off-premises sales and monies derived at or away from the Restaurant, insurance proceeds for lost sales covered by business interruption insurance, and agreements to pay or other consideration, whether or not payment is received at the time of sale or any such amounts prove uncollectible. Gross Sales will not be adjusted for uncollected accounts.
Lees Famous Recipe also retains the right to promote, sell, distribute and license products and services authorized for sale at Lee's Famous Recipe Restaurants as well as ancillary products and services such as its sauces and other food products, beverages, clothing, glassware and memorabilia under the Marks through dissimilar channels of distribution (i.e., other than the operation of full-service Lee's Famous Recipe Restaurants), including direct mail, wholesale activities, grocery stores, convenience stores, retail stores, and by electronic means such as the Internet, and other permanent, temporary, or seasonal food service facilities, carts, kiosks, or other mobile food vehicles, such as food trucks, and pursuant to conditions they deem appropriate within and outside the Development Area.